CGEMY - Capgemini SE

Other OTC - Other OTC Delayed Price. Currency in USD
21.47
-0.60 (-2.70%)
As of 10:36AM EST. Market open.
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Previous Close22.07
Open21.47
Bid0.00 x 0
Ask0.00 x 0
Day's Range21.38 - 21.56
52 Week Range21.37 - 26.30
Volume22,305
Avg. Volume63,975
Market Cap18.168B
Beta (5Y Monthly)0.92
PE Ratio (TTM)20.85
EPS (TTM)1.03
Earnings DateN/A
Forward Dividend & Yield0.38 (1.74%)
Ex-Dividend DateJun 02, 2019
1y Target EstN/A
  • A Bunch of Merger Arbs Is Playing the Long Game
    Bloomberg

    A Bunch of Merger Arbs Is Playing the Long Game

    (Bloomberg Opinion) -- Capgemini SE picked up some fellow travelers with its 3.7 billion euros ($4 billion) bid for Altran Technologies SA: a large cohort of minority shareholders who refused to accept the French IT group’s offer, including activist-in-chief Elliott Management Corp. Tuesday’s decent results from Altran diminished the prospect of these holdouts selling when the tender process reopens briefly next month.(1) That leaves Capgemini with the most basic form of control over Altran and a big thorn in its side.Having guided that it wouldn’t raise the 14 euros-a-share offer made in June last year, Capgemini flip-flopped at the last minute and added a paltry half euro in January. That helped it secure acceptances of 54%, just above the threshold set for a takeover. Exclude the 11% holding Capgemini had already purchased from private equity firm Apax Partners SAS, and the other shares proffered amount to less than half of the remaining register. That indicates widespread unhappiness with the terms.Elliott has a 15% holding. The precise composition of the remaining one-third of the register is unclear. Many long-term Altran shareholders sold in the seven-month battle, so it’s likely that the “remainers” include merger arb funds. Such investors would be hoping for the chance to get a higher price for their shares in the future than Capgemini was offering. If so, that would make Altran a special case: Arbs don’t normally hang around after extracting a sweetener.A lucrative buyout is some way off. Capgemini said it wouldn’t make an offer to minorities above 14.50 euros a share price for 18 months. A sudden dip in Altran’s performance would make that price more attractive. But there were no shocks in its latest numbers; Altran shares currently trade at just over that level.Capgemini still has good reason to seek 100% ownership. As things stand, it cannot fully integrate Altran but must run it as a separate entity. It will be under pressure to show that it’s not managing operations for its benefit at the expense of other shareholders. It may be able to reap some revenue synergies, but the benefits from the transaction will fall short of their full potential.What has Capgemini achieved? Its shares jumped 8% on the day the deal was announced last year, reflecting the strong financial and industrial logic of combining the firms. Those gains have since evaporated. Capgemini’s stock is now only slightly outperforming the French index.Declarations of victory in this battle, from either side, will have to wait. Elliott and the minorities have a strong negotiating position if Capgemini moves to take full control in 2021. Capgemini has bought a controlling stake in Altran cheaply. As a parting gift from outgoing Chief Executive Officer Paul Hermelin to his successor Aiman Ezzat, it’s better than nothing. But Ezzat has his work cut out to prove he can extract value from this deal with scarcely more than half the shares.(1) Approval for the deal is subject to a court challenge; Capgemini has indicated it will either refile its offer or reopen it to acceptances depending on the outcome.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    Great Lakes Cheese Completes Its Human Resources Digital Transformation Led by Capgemini

    Capgemini today announced the successful launch of a bold new human resources transformation initiative on behalf of Great Lakes Cheese (GLC), the premier manufacturer and packer of natural and process bulk, shredded and sliced cheeses. The new Human Resources Information System (HRIS), built by Capgemini on SAP SuccessFactors solutions and Benefitfocus, is designed to improve employee engagement by leveraging cloud, real-time data and insights and mobile applications.

  • Business Wire

    Capgemini Recognized for Collaboration and Client Partnership with HP Inc. by ISG Paragon Awards™ Americas

    Capgemini today announced that it has won a 2019 ISG Paragon Americas award in the "collaboration" category for its work with HP Inc.

  • How Good Is Capgemini SE (EPA:CAP) At Creating Shareholder Value?
    Simply Wall St.

    How Good Is Capgemini SE (EPA:CAP) At Creating Shareholder Value?

    Today we'll evaluate Capgemini SE (EPA:CAP) to determine whether it could have potential as an investment idea. To be...

  • Reuters

    PRESS DIGEST- Financial Times - Jan. 28

    Britain's Financial Conduct Authority was fined by The Pensions Regulator for failing to provide complete details to the members of its pension plan, the regulators said on Monday. French consulting and IT services provider Capgemini succeeded in securing 53.6% of Altran Technologies' shares following a tender offer that closed on Jan. 22, the French markets regulator said on Monday. UK government is poised to renationalise the failed Northern rail franchise and remove it from the control of Arriva, part of German state-owned railway company Deutsche Bahn.

  • Capgemini passes first hurdle in Altran bid despite Elliott resistance
    Reuters

    Capgemini passes first hurdle in Altran bid despite Elliott resistance

    French consulting and IT services provider Capgemini succeeded in securing more than half of the capital of smaller rival Altran Technologies, the French market regulator AMF said on Monday, marking a win against U.S. activist fund Elliott. The AMF said Capgemini holds 53.6% of Altran's share capital and at least 53.4% of the voting rights. The group - which faced a tussle with Altran shareholder Elliott over its offer price - had aimed to get the backing from just over half of Altran's investors to pursue its bid.

  • Bloomberg

    Will Hedge Fund Elliott Accept Only a Small French Profit?

    (Bloomberg Opinion) -- Activist hedge fund Elliott Management Corp. and its French tech consultancy target Capgemini SE face the same test: Do they mean what they say?Capgemini SE this week buckled to pressure from Elliott and other minority shareholders, raising its bid for local rival Altran Technologies SA. The uplift, half a euro per share, or 4%, is a derisory carrot to tempt refuseniks to accept a deal widely considered cheap. But Capgemini is also wielding a stick: A statement that it won’t make another offer to buy Altran for 18 months if shareholders snub this one. What’s more, if it secures a small majority of the shares, it won’t offer to buy additional stock at above the new 14.50 euros ($16.14) per share bid price over the same period.That self-imposed constraint is tactically innovative. It’s designed to quash any attempt to force Capgemini to pay even more, whether for simple control or full ownership. Doing so would be a huge loss of face in view of what it has said.There are limited formal arrangements in France’s M&A regulations that bind companies to final offers or the financial terms of repeat bids. That contrasts with the U.K., where an offer can be formally labelled “final” and then cannot be raised even with the target’s consent. That way, investors who decide to buy, or not buy, shares based on a bidder pronouncement won’t find themselves being caught out by a sudden sweetener.Capgemini’s statement seems categorical on not re-bidding or paying more later but this is unusual territory, and investors could be forgiven for questioning how binding the words are and under what circumstances they’d lose force. What if there’s an approach for Altran from another suitor? Could Capgemini then enter an auction if both sets of shareholders and both boards wanted it to? This seems unlikely, but people will wonder. In practice, it’s hard to see how Capgemini could wriggle out of its commitment without facing sanction or a lawsuit.On the face of it, Altran shareholders have a simple choice between Capgemini’s offer and reverting to their company’s strategy for independence. Altran has some punchy 2022 targets. If met, there’s a plausible argument that the shares would go above the bid price. The fact that Altran’s board backed the original Capgemini offer in June suggests it sees some risk in the plan being delivered. Shareholders may also worry that the suitor is being firm on price because it knows something they don’t, thanks to its due diligence.For Elliott, its credibility and patience face a test. It has opposed an offer at this level as undervaluing Altran. Eighteen months isn’t such a long time to wait if this deal is rejected; while Capgemini has other M&A options, Altran’s size makes it uniquely attractive. Capitulating to the offer would probably deliver only a small profit to Elliott because the fund built its position when the shares were already trading at about 14 euros. That would be vastly outweighed by the dent to credibility from caving in. Still, it wouldn’t be the first activist to settle for less than it asked for and act like it was a major victory.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • France's Capgemini slightly raises bid on Altran after Elliott battle
    Reuters

    France's Capgemini slightly raises bid on Altran after Elliott battle

    The firm, which had thus far said its 3.6-billion-euro (3.1 billion pounds) bid for all of Altran reflected a fair value for the target, is now offering Altran shareholders 14.5 euros per each share they hold, compared to 14 euros previously. This represents an addition of 128 million euros to the initial bid, which Capgemini said would be final. Capgemini decided to raise its offer because Altran's shares are already trading above 14 euros on market rumours that the group might be ready to increase its offer, Hermelin said.

  • Bloomberg

    When Elliott’s After You, Don’t Give It Ammunition

    (Bloomberg Opinion) -- Elliott Management Corp.’s activist attack on Capgemini SE’s lowly 3.6 billion euro ($4 billion) bid for rival IT consultancy Altran Technologies SA is getting help from an unusual source: the bidder. Capgemini’s recent statements about the deal may merely be an incentive for Altran shareholders to sit tight.The target’s investors need to feel some fear if they’re to accept the 14 euros a share offer before it closes in late January. In particular, they need to be afraid that if they say no, Altran shares will fall a long way below the bid price. Such worries were already being eased by the fact that the market, and Altran’s peers, have climbed since the takeover was launched in June.But comments by Capgemini’s chief executive officer Paul Hermelin have only reinforced the idea that there’s little downside to rejecting the offer. In a recent interview, he drew attention to a fairness opinion commissioned by the Altran board which concluded the company was worth about 13 euros a share. That’s hardly going to make shareholders feel an urgent need to take 1 euro a share more.Now look at the commitments that Capgemini has had to make in relation to a legal action against the bid brought by a shareholder lobby group. The hearing for this won’t take place until March, so it’s possible Capgemini could by then have received the minimum 50.1% acceptances it is seeking. Capgemini has said that if it lost the case, so the offer was cancelled, it would relaunch the bid making the necessary fixes. That’s not to say any fresh takeover attempt would be at more than 14 euros a share, but shareholders would certainly gain fresh leverage to demand more.Of course, some Altran shareholders may dislike the offer and yet feel compelled to accept for fear of being stuck in a minority if their fellow investors gave Capgemini those minimum acceptances. Hermelin has himself eased such concerns by indicating that a simple majority holding would be sufficient to enable Capgemini to harvest financial benefits from Altran. In that case, minorities who stayed on board would be compensated as they would enjoy the value creation. And Capgemini has promised minority shareholders the chance to change their mind and accept the offer in March anyway.It’s all grist to Elliott’s mill and the hedge fund naturally exploited the opportunity to play back Capgemini’s statements against the French company’s own offer on Wednesday. Capgemini’s bid may be the only one on the table, but right now the alternatives to accepting it don’t appear terribly frightening.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2020 Bloomberg L.P.

  • Is Capgemini SE (EPA:CAP) A Smart Pick For Income Investors?
    Simply Wall St.

    Is Capgemini SE (EPA:CAP) A Smart Pick For Income Investors?

    Is Capgemini SE (EPA:CAP) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can...

  • Reuters

    Elliott may sell Altran shares if Capgemini sweetens bid-source

    Activist hedge fund Elliott would sell its shares in French Altran if software consultancy Capgemini increased its bid for Altran to 18 euros from 14 euros per share, a source familiar with the situation told Reuters on Thursday. The source added that if Capgemini were to increase its bid to that level, French minority shareholders defence group Adam may drop its legal challenge to Capgemini's bid.

  • Has Capgemini SE (EPA:CAP) Improved Earnings Growth In Recent Times?
    Simply Wall St.

    Has Capgemini SE (EPA:CAP) Improved Earnings Growth In Recent Times?

    When Capgemini SE (ENXTPA:CAP) released its most recent earnings update (30 June 2019), I compared it against two...

  • Bloomberg

    Elliott Calls Capgemini’s $4 Billion Altran Bid Too Low

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Activist investor Elliott Management Corp. said that Capgemini SE’s offer for Altran Technologies SA is inadequate and called the sales process flawed.Elliott, which has built up a position of more than 10% in Altran, believes that a fair value for the company is more than 20 euros a share, based on analysts’ estimates for the company’s future earnings, it said in a statement on Wednesday. The firm had said in an earlier filing that Capgemini’s current offer of 14-euros-a-share, or 3.6 billion euros ($4 billion) excluding debt, undervalues the company.“Altran shareholders are offered an inadequate premium to forgo the company’s promising standalone prospects, despite the huge value-creation potential of the combination,’’ Elliott said in the statement.Altran shares rose 0.2% to 14.07 euros at 10:25 a.m. in Paris. The stock’s gained about 23% since Capgemini’s offer in June.Capgemini’s incoming CEO Aiman Ezzat said at the Morgan Stanley European Technology, Media & Telecom Conference in Barcelona this month that the company’s bid for Altran isn’t going up. The deal was supposed to close this year, but has likely been delayed until 2020 after a shareholder lobby raised objections in a French court.A spokesman for Capgemini said the company doesn’t have any further comment. A spokeswoman for Altran said that they’ve been in touch with Elliott and is aware of its concerns, and that the company believes that the sales process has followed regulations.Read more about the shareholder lawsuit here.The Altran deal will help address an engineering shortage in Europe and the U.S. that’s left tech companies short on employees, Ezzat said. When combined Capgemini and Altran -- also based in Paris -- will be able to help clients in areas such as cloud computing, the internet of things, 5G, and artificial intelligence software, Capgemini’s current CEO Paul Hermelin said in a statement in June when the deal was announced.“There’s much more demand for engineers than there is capacity in the western world,” Ezzat said in Barcelona. “There’s no alternative unless we find a way to automate all the engineering work.”The deal announced in June requires that 50.1% of Altran shares be tendered for the transaction to proceed. Under French law, Capgemini would need 90% of shares to squeeze out the minority holders, making Elliott raising its stake to more than 10% a pivotal consideration.(Updates with Elliott quote in third paragraph. A previous version corrected the timing of an earlier Elliott statement.)To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Hedge fund Elliott keeps up pressure on Capgemini for higher Altran offer
    Reuters

    Hedge fund Elliott keeps up pressure on Capgemini for higher Altran offer

    Activist hedge fund Elliott tried again to squeeze a higher offer from France's Capgemini for rival Altran, saying why it thought the offer undervalued the company in which the fund manager holds a stake. Elliott has built up a stake of just over 10% in Altran through equity derivatives. It has already said it thought software consultancy Capgemini's 14 euro per share, or 3.6 billion-euro ($4 billion) bid for rival Altran, was too low.

  • Capgemini will not be pressured into higher Altran bid, CEO says
    Reuters

    Capgemini will not be pressured into higher Altran bid, CEO says

    Software company Capgemini will stick to its bid of 14 euros ($15.43) per share for smaller rival Altran, its chief executive told Reuters, as it tries to fend off pressure from activist hedge fund Elliott for a higher offer. Elliott, which made waves in France last year when it revealed a stake in drinks maker Pernod Ricard, has since built a holding of more than 10% in Altran, regulatory filings show. It has also said Capgemini's 3.6 billion-euro bid from June this year undervalued Altran.

  • Capgemini extends its strategic initiative with Amazon Web Services to North America
    PR Newswire

    Capgemini extends its strategic initiative with Amazon Web Services to North America

    Capgemini has expanded its strategic initiative with Amazon Web Services (AWS) to North America to further meet the needs of customers by focusing on mass application migrations, cloud native development, cloud application modernization, artificial intelligence (AI), machine learning (ML) and managed services. First launched in Europe last year, Capgemini and AWS are further collaborating with a focus on extra personnel and broader technical training to help North American clients drive improvements in their business performance and make digital business a reality.